§ 120-i. Means of payment. The indebtedness created for such public works may be paid by each contracting municipality, including a sewer district of a town, partly by assessment on the property deemed specially benefited by such improvement and partly by a charge on such municipality at large. In the case of a sewer district of a town the petition for the creation thereof or a supplemental petition may state the means of payment as above provided and the assessment therein shall be made in form and substance so far as applicable as provided in section two hundred and thirty-seven of said law, except that such sewer commissioner shall assess a part of the district's proportionate share of the total cost of such system on the lands within such district, or extension of an existing district in proportion, as nearly as may be, to the benefit which each lot or parcel will derive therefrom. Such sewer commissioners shall determine the amount to be raised by general taxation for such expense. Nothing herein contained shall be construed as preventing the contracting municipalities from paying such indebtedness, in whole or in part, by the issuance of obligations pursuant to the terms of the local finance law.